Tuesday, October 21, 2008


Yet another bailout instrument from the Fed is announced today—the Money Market Investor Funding Facility—offering $540B for struggling money market funds now tight on capital. The word is they are having problems honoring withdrawals in a timely way due to difficulties redeeming commercial paper in the current financial environment.


East.Bay.Miser said...

Apparently, Treasury is now directing some funds towards commercial paper after shoring up the banks. I say help people like Joe the Plummer first.

SF Mechanist said...

That would be a refreshing change.

I've heard it once suggested that TAF money was being used for investing in oil/wheat/metal/commodities--rather than as a replacement for commercial paper--but haven't seen anything that substantiates it.